Section 4 in The Distribution of Electricity Licence (Additional Requirements of Capital Adequacy, Creditworthiness and Code of Conduct) Rules, 2005
4. Requirement of Code of Conduct.
- The applicant for grant of licence shall satisfy the Appropriate Commission that he has not been found guilty or has not been disqualified under any of the following provisions within the last three years from the date of the application for the grant of licence:(a)Section 203, Section 274, Section 388B or Section 397 of the Companies Act, 1956;(b)Section 276, Section 276B, Section 276BB, Section 276C, Section 277 or Section 278 of the Income-tax Act, 1961;(c)Section 15C, Section 15G, Section 15H or Section 15HA of the Securities and Exchange Board of India Act, 1992;(d)clause (b), (bb), (bbb), (bbbb), (c) or (d) of Sub-section (1) of Section 9 the Excise Act, 1944;(e)Section 132 or Section 135 of the Customs Act, 1962,and that the applicant is not a person in whose case licence was suspended under Section 24 or revoked under Section 19 of the Act, within the last three years from the date of application:Provided that where the applicant is a company, it shall satisfy the Appropriate Commission in addition to provisions of this rule that no petition for winding up of the company or any other company of the same promoter has been admitted under Section 443 (e) of the Companies Act, 1956 on the ground of its being unable to pay its debts.
